"82% of Small and Medium Shipbuilding Workers Experience Wage Reduction Due to 52-Hour Workweek"

Korea Federation of SMEs Holds Meeting on 52-Hour Workweek
Manpower Drain in Shipbuilding and Root Industries Threatens Livelihoods
Business Community United in Calling for Flexible Work Systems

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] It has been revealed that 82.4% of workers in small and medium-sized shipbuilding industries experienced a decrease in wage levels after the introduction of the 52-hour workweek system. As skilled workers from small and medium shipbuilding and root industries leave for other sectors, the labor shortage is intensifying.

The Korea Federation of SMEs held a seminar titled "Full Implementation of the 52-Hour Workweek System: Issues and Improvement Measures in Small and Medium Enterprises" on the 29th at the Federation of SMEs in Yeouido, Seoul.

This seminar was organized to diagnose the current situation and problems mainly in the shipbuilding and root industries as the 52-hour workweek system is fully implemented in small and medium enterprises starting this year, and to find institutional improvement measures.

At the event, Hwang Kyung-jin, head of the Regulatory Innovation Center at the Korea Institute for Startup & Entrepreneurship Development, presented the "Survey Results on the 52-Hour Workweek System in In-house Partner Companies of the Shipbuilding Industry." The survey was conducted in July targeting 103 in-house partner companies of large shipyards and 11,490 workers regarding the 52-hour workweek system.

Researcher Hwang stated, "82.4% of workers in small and medium shipbuilding industries experienced a wage decrease due to the 52-hour workweek system," adding, "The biggest difficulty identified was the intensifying outflow of manpower to other industries."

He continued, "Since 2014, the number of workers in the shipbuilding industry has been declining, and the already severe labor shortage in the shipbuilding sector is worsening further due to the 52-hour workweek system."

[Image source=Yonhap News]

Professor Lee Jung of the Graduate School of Law at Hankuk University of Foreign Studies said, "With the implementation of the 52-hour workweek system, wages of workers in small and medium shipbuilding and root companies have decreased by more than 30 to 40%, and skilled workers are leaving, exacerbating the labor shortage and causing side effects."

He argued, "To minimize on-site side effects in the future, institutional improvements such as reorganizing the flexible working hours system, expanding the special extended working hours system, and allowing extended working hours on a monthly or yearly basis must be implemented as soon as possible."

Son Seung-beom, head of Jangwon Special Industry, appealed, "Workers in small root companies are facing a livelihood crisis as their wages have decreased by nearly 1 million won due to the 52-hour workweek system, rather than enjoying an evening life."

He also emphasized, "Considering various working environments and industry characteristics, reasonable policies are needed to allow workplaces that want to work more to do so."

There was also mention of the extended working hours systems freely utilized through labor-management agreements in Germany and Japan. Lee Tae-hee, head of the Smart Job Division at the Korea Federation of SMEs, said, "Both Germany and Japan, manufacturing powerhouses, do not limit extended working hours to one week but allow labor and management to freely use them within a certain range," adding, "South Korea should also at least set the usage limit of extended working hours on a monthly basis and allow labor and management to agree and utilize it flexibly."

Hong Jong-seon, head of the Labor Standards Policy Team at the Korea Employers Federation, also stated, "The current flexible working system is difficult to apply in many companies due to restrictions such as limitations on target tasks and complicated introduction procedures like written agreements with employee representatives," and added, "It must be improved as soon as possible to increase its utilization."